Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: November 25, 2025

Purpose: The council’s local funding formulae for schools and early years must be revised annually after a consultation period with all schools and the Schools Forum. Following the consultation, this report will recommend the principles to be used in 2026/27. The report will also discuss the wider implications of Dedicated Schools Grant funding including those relating to Special Educational Needs and Disabilities (SEND).

Content: RESOLVED:   That Cabinet notes and supports the application to the Secretary of State to transfer 1% of schools’ block funding to support high needs Special Educational Needs and Disabilities (SEND) costs, as set out in the council’s Safety Valve agreement with the Department for Education (DfE) That Cabinet agrees the general principles for schools funding in 2026/27 recommended by the Schools Forum at its meeting on 6 October 2025, That Cabinet agrees to continue to make additional funding available to a small minority of primary schools with disproportionately high incidence of SEND, as agreed by the Schools Forum That Cabinet agrees to continue additional funding to primary schools with temporary falls in roll, as agreed by the Schools Forum That Cabinet agrees the principles of Surrey’s early years funding formula for 2026/27 That Cabinet delegates authority to the Director of Education and Lifelong Learning in consultation with the Executive Director of Children, Families and Lifelong Learning and the Cabinet Member for Children, Families and Lifelong Learning to approve amendments to the funding rates in the schools funding formula and early years funding formula as appropriate, following receipt of the DSG settlement and DfE pupil data in December 2025 and taking into account relevant early years census data. This is to ensure that total allocations to schools under these formulae remain affordable within the council’s DSG settlement and to meet the mid-January statutory deadline for submission of school budgets to the DFE and the late February deadline for publishing early years provider funding rates.   Reasons for Decisions:   To comply with DfE regulations requiring formal council approval of the local funding formula for Surrey’s primary and secondary schools and to allow budgets for schools to be submitted to the DfE by the anticipated deadline of 22 January 2026 and funding rates for early years providers to be set by the anticipated deadline of late February 2026.   (The decisions on this item can be called-in by the Children, Families, Lifelong Learning & Culture Select Committee)